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Algonquin Power & Utilities (AQN) Q2 Earnings Lag Estimates

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Algonquin Power & Utilities Corp. (AQN - Free Report) reported second-quarter 2020 operating earnings of 9 cents per share, which lagged the Zacks Consensus Estimate of 11 cents by 25%. Operating earnings were also 18.2% lower than the year-ago figure of 11 cents per share.

Total Revenues

Algonquin Power & Utilities’ total revenues came in at $343.7 million, which lagged the Zacks Consensus Estimate of $357 million by 3.84% but increased marginally from $343.6 million in the year-ago quarter.

Highlights of the Release

Total expenses increased 1.2% year over year to $284.6 million due to higher operating and administrative expenses.

Interest charges for the reported quarter were $44.8 million, down 2.2% from the year-ago period.

In the first six months of 2020, Electric Distribution Systems, Natural Gas Distribution Systems, and Water and Wastewater Distribution Systems customers increased 1.02%, 1.01% and 1.9%, respectively, from the comparable year-ago period.

On Jul 30, 2020, Chevron U.S.A Inc. ("Chevron") and Algonquin Power & Utilities announced an agreement seeking to co-develop renewable power projects that will provide electricity to strategic assets across the global portfolio of the former.

Financial Highlights

As of Jun 30, 2020, the company had cash and cash equivalents of $60.3 million, down from $62.5 million on Dec 31, 2019.

Total long-term debt as of Jun 30, 2020 was $3.9 billion, up from $3.7 million on Dec 31, 2019.

In first-half 2020, cash provided from operating activities was $209.8 million, down 17.9% from $255.7 million in the comparable year-ago period.

Guidance

The company continues to monitor the impacts of the COVID-19 pandemic and other factors on 2020 adjusted net earnings per share estimates. Algonquin Power & Utilities reiterated its guidance for EPS of 65-70 cents and capital expenditure within $1.3-$1.75 billion for 2020.

The company continues to execute the five-year $9.2-billion capital program and is making solid progress on projects under construction. These projects will strengthen and expand its infrastructure, as well as allow it to serve the expanding customer base.

Zacks Rank

Currently, Algonquin Power & Utilities has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

IDACORP, Inc. (IDA - Free Report) reported second-quarter 2020 earnings of $1.19 per share, which surpassed the Zacks Consensus Estimate of $1.18 by 0.8%.

Edison International (EIX - Free Report) reported second-quarter 2020 adjusted earnings of $1.00 per share, which missed the Zacks Consensus Estimate of $1.11 by 9.9%.

DTE Energy Company (DTE - Free Report) reported second-quarter 2020 operating earnings per share of $1.53, which beat the Zacks Consensus Estimate of $1.31 by 16.8%.

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